The UK’s Competition and Markets Authority (CMA) has opened an investigation into Richemont’s sale of e-commerce company Yoox Net-a-Porter (YNAP) to Farfetch to assess whether it could potentially lead to unfair competition.
The CMA has invited all interested parties to comment on the transaction while it thoroughly reviews the merger situation governed by the Enterprise Act 2002.
With Farfetch as the controller, Richemont’s portfolio of brands, which also includes Cartier and Alaïa, could gain access to the technology driving Farfetch’s sales, which could result in a significant reduction in competition in one or more markets in the UK.
Last year, Richemont sold 51 percent of YNAP to Farfetch and Dubai businessman Mohamed Alabbar.
As part of the deal, Richemont secured an approximately 13 percent stake in Farfetch.
This translated article originally appeared on FashionUnited.uk.
